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Submitted by K. Saber on

No, it is not clear
and may include an erroneous statement:

Read the paragraph that ends with “then converted them back to the US dollar using the 2011 PPPs, and finally took a simple average, what would we get? You guessed it: $1.90.” What does is suggest? It clearly suggests that the $1.90 is a $1.90 USD. There is a problem here.

Consider a hypothetical example (and forget for the moment the 2005/2011 differences) of two countries having exactly the same GNI and same income distributions, but that the cost of living in the first is 10 times that of the second. Do thy have the same poverty level? Using the $1.90 USD interpretation will so suggest, while having same income and hugely different cost of living would suggest otherwise.

If on the other hand the $1.90 is a PPP dollar, different results will be obtained, as the same $1.90 PPP would mean a different value in each country, and will show a lot more people under the poverty level in the first country, the one with higher cost of living.

K. Saber, Toronto, Canada